Centre Raises Onion Procurement Price for Buffer Stock to Rs 1,730 per Quintal
The central government has raised the onion procurement price under its buffer stock scheme from Rs 1,650 to Rs 1,730 per quintal, effective June 20, 2026, to support farmers amid falling market prices and export disruptions.
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In a move aimed at supporting onion growers amid weak market prices, the central government has increased the procurement price of onions under its buffer stock scheme from Rs 1,650 per quintal to Rs 1,730 per quintal.
Announcing the decision, Union Minister for Consumer Affairs, Food and Public Distribution, Pralhad Joshi said in a post on social media that the higher procurement price would help farmers receive better returns for their produce while also contributing to price stability in the market. The revised procurement rate will come into effect from June 20, 2026.
The government had initially decided to procure onions for the buffer stock at Rs 1,580 per quintal. The rate was subsequently increased to Rs 1,650 per quintal on June 13. With the latest revision, the procurement price has been raised for the second time within a week.
The decision comes at a time when onion farmers are facing significant challenges due to falling domestic prices. Trade disruptions linked to the ongoing crisis in West Asia have affected onion exports, resulting in excess supplies in the domestic market and lower prices for farmers. Through buffer stock procurement, the government aims to provide price support and reduce distress among growers.
Under the Price Stabilisation Fund (PSF), the Centre creates an onion buffer stock every year to manage excessive price volatility and ensure adequate supplies during periods of shortage. For the current season, the government has set a target of procuring 200,000 tonnes of onions. Procurement operations are being carried out primarily through the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers' Federation of India (NCCF). The procurement drive for the season began on May 15.
Despite the increase in the procurement price, farmer organisations in major onion-producing states, including Maharashtra, remain dissatisfied. They argue that rising costs of labour, fertilisers, irrigation and other agricultural inputs have significantly increased the cost of cultivation. According to these groups, the government should procure onions at a minimum price of Rs 3,000 per quintal to ensure reasonable returns to farmers. They contend that the current procurement rate is insufficient even to cover production costs.
According to official estimates, India's onion production in 2025-26 is expected to reach 30.737 million tonnes, marginally lower than the 30.767 million tonnes produced in the previous year.
